Apple Ramping Up to Design Its Own Chips?

Industry darling Apple looks to be building its own chip design team, perhaps in an effort to develop unique product features...and hold its secrets closer.

Technology darling Apple looks to be assembling a team of seasons industry veterans to design its own chips, potentially in a move to keep its products differentiated from the rest of the consumer electronics market…and help the famously secretive company keep its product plans under wraps. About a year ago, Apple acquired low-power microchip developer P.A. Semi, and recently engaged in a battle with IBM over hiring Mark Papermaster as the new senior VP for Devices Hardware Engineering—meaning he’s overseeing iPod and iPhone engineering. Now, the Wall Street Journal and other outlets are reporting that Apple has hired former AMD graphics CTOs Raja Moduri and Bob Drebin.

If Apple is building its own in-house chip design team, it runs counter to the broader industry trend to use off-the-shelf components and outsource chip development to fabless engineering outfits. However, by keeping its chip design in-house, Apple would be able to keep its cards closer to its chest, disclosing less information about its forthcoming products to partners and suppliers…which, in turn, means less information about future Apple products can leak to the competitors or the press. Apple’s recent consumer electronics success has stemmed in part from being able to beat its competitors to market with new products and capabilities, then keep innovating ahead of the curve while competitors rush to emulate what Apple has already done.

An Apple spokesperson declined to comment on the reports.